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Mortgage question

  • 04-05-2010 3:05pm
    #1
    gimmick
    Closed Accounts Posts: 21,296 ✭✭✭✭


    I am thoroughly confused here. My fixed rate mortgage has recently expired so we slipped into the variable which is fine and we are saving about €200 a month from what we were paying.

    But I am looking at fixing again before the next hike which the poor banks will have to impose.

    So, on my last fixed I was paying 5.05%, whereas if I am to fix now, they would want 4.7%. Well and good, but he then tells me that my payment will have gone up by about €30 a month? To me, that makes zero sense. I know mortgage interest relief comes into play, but still, how could my payment go up if the interest rate is less?

    Any takers?

    Mods if this is in the wrong area please move appropriately. Thanks


Comments

  • #2
    deadl0ck
    Registered Users, Registered Users 2 Posts: 4,196 ✭✭✭deadl0ck


    Sounds crazy to me, but I'd ask on the Mortgage board on the ask about money forums


  • #3
    jor el
    Closed Accounts Posts: 16,713 ✭✭✭✭jor el


    Better off in Banking, Insurance & Pensions forum.


  • #4
    rainbowtrout
    Registered Users, Registered Users 2 Posts: 15,397 ✭✭✭✭rainbowtrout


    gimmick wrote: »
    I am thoroughly confused here. My fixed rate mortgage has recently expired so we slipped into the variable which is fine and we are saving about €200 a month from what we were paying.

    But I am looking at fixing again before the next hike which the poor banks will have to impose.

    So, on my last fixed I was paying 5.05%, whereas if I am to fix now, they would want 4.7%. Well and good, but he then tells me that my payment will have gone up by about €30 a month? To me, that makes zero sense. I know mortgage interest relief comes into play, but still, how could my payment go up if the interest rate is less?

    Any takers?

    Mods if this is in the wrong area please move appropriately. Thanks

    Well maybe the bank is referring to the variable rate you're currently on? If you're saving €200 after moving onto the variable rate, it has to be lower that 5.05%, and probably lower than 4.7% you are being quoted. If the fixed rate you're being offered is higher than the current variable rate your repayments will rise.


  • #5
    [Deleted User]
    Posts: 23,339 ✭✭✭✭ [Deleted User]


    gimmick wrote: »

    So, on my last fixed I was paying 5.05%, whereas if I am to fix now, they would want 4.7%.
    Any takers?

    4.7% seems a rather good rate to be honest, weird how they are offering a lower fixed rate than what you were on given the way things are going.


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